Fox Suffers $12-Million Net Loss in 1st Quarter

20th Century Fox Film Corp. chalked up a net loss of $12.4 million in its first fiscal quarter ended Nov. 24, the first financial report under owner Marvin Davis’ new management at the studio, it was disclosed Wednesday.

The report follows a $74-million loss in the Los Angeles-based studio’s previous quarter.

“Poor theatrical results of feature films” again was officially pinpointed among major reasons for the latest red ink, along with a drop in the number of Fox films available for pay TV and in the number of TV programs on the air.

Sold Share in Facility Only about half of the latest quarter came during the reign of Barry Diller, Davis’ new chairman and chief executive at the Los Angeles movie studio. He took the top posts Oct. 1.

The Los Angeles movie studio also disclosed that it completed the sale of its 50% interest in television production facilities in Studio City to MTM Enterprises Inc. in late December for $30 million. CBS Inc., which is Fox’s partner in a lucrative home video operation, owns the other 50% of the Studio City facility.

The developments were reported in Fox’s 10Q quarterly report filed late Tuesday with the Securities and Exchange Commission in Washington and made public Wednesday. Although privately owned by Davis, Fox must file financial reports with the SEC because it has some publicly traded debt securities.

Diller’s compensation arrangements were not disclosed in the latest filings. His employment agreement with Fox’s holding company, TCF Holdings Inc., was listed among exhibits to the 10Q but was “omitted as confidential” from the public document file.

Meanwhile, the studio has confirmed that another veteran member of Davis’ previous management team, Executive Vice President Burton I. Monasch, is leaving Fox shortly. Monasch, whom Davis brought in as his top negotiator in March, 1982, is the last of the group gathered by Davis after he bought the studio in 1981 for about $800 million.

Last week Diller announced the hiring of Jonathan Dolgen for the newly created job of senior executive vice president. His duties will include those that fell under Monasch.

Diller’s regime also has acknowledged pruning an undisclosed number of lower-ranking employees from the payroll. It also has laid off most of its New York publicity employees as of Feb. 1.

Bank Debt Rises Although a heavy operating loss was included in Fox’s fiscal 1984 net loss of about $90 million, the holding company of Davis and his former partner, Marc Rich, took out $145 million during that year in “distributions” from sale of some assets. That brought to $538.6 million the cash reported as distributed to the owners since fiscal 1982.

Meanwhile, the new 10Q disclosed that Fox’s bank debt rose to $414 million from $363 million at the end of the previous quarter, Aug. 25.

Fox’s latest report seemed to go a step further in discussing its intention of raising additional financing for its $347 million projected movie-TV production program for fiscal 1985 (up from the $297-million figure the company used in late November).

It said it anticipates obtaining “such financing by a combination of (1) an offering of debt and/or preferred stock, (2) distributions from partnership interests and (3) the sale of certain assets.”

The firm’s 10K annual report in late November mentioned as financing methods under consideration the offering of debt and/or preferred stock, as well as “product financing arrangements with outside investors.”

The latter possibility was dropped in the latest report.

The 10K also had said the firm “intends to realize a portion of the fair value of certain assets to reduce bank borrowings.”

Fox’s assets include a 50% interest in its 63-acre main studio adjoining Century City and in its Aspen, Colo., and Pebble Beach, Calif., resorts. The other 50% is held by Davis and several Denver business associates.

The company’s new 10Q reported that first-quarter operating revenues dropped to $164.1 million from $208.8 million in the same period of fiscal 1984, while operating costs dropped to $140.8 million from $166.3 million a year earlier.

The company also recorded a $12.4-million installment of continuing amortization write-offs of certain “excess costs” related to the 1981 acquisition of Fox by Davis and Rich.